True or False: All Ordinary Non-Giffen Goods are Also Normal Goods?

This statement is True. To understand why, we need to define what ordinary non-Giffen goods and normal goods are.

Normal goods are those goods for which demand increases when consumer income rises, and conversely, demand decreases when consumer income falls. In contrast, Giffen goods are a specific type of inferior good that experience an increase in demand as prices rise – an unusual situation that violates the basic law of demand.

Ordinary non-Giffen goods, on the other hand, simply refer to goods whose demand behaves in a way consistent with typical market expectations: as income increases, demand increases, and as prices decrease, demand also increases.

Since all ordinary non-Giffen goods are not subject to the paradox of the Giffen effect, we can conclude that they function like normal goods. Therefore, we can affirm that all ordinary non-Giffen goods can indeed be classified as normal goods, given their positive relationship between demand and income.

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